The New American Dream

I remember reading a news article a while back that said the definition of the American Dream has changed from home ownership and 2.5 kids to being debt-free and saving for retirement. I've been married a year and out of college for almost two years, and recently decided to really focus on getting out of debt so our only mandatory expenses are rent, utilities, insurance, phones, internet and food. Our monthly disposable income would increase substantially once we're there.

With two federal college loans, one private college loan, a vehicle payment, and two credit cards, it's a good-sized amount to pay off. The current plan is to live on one income and use the other entirely for paying off debt, and once it's done, never use cards/loans for anything unless it's an actual emergency (such as a medical issue) or something that exceeds a realistic income stream (such as buying a house, if and when that day comes). We'll keep a credit card for big purchases or vacations, but only use it to the point that we can immediately pay off the balance and no further.

I was curious if any other duders out there are currently doing something similar, and what your thoughts and experiences are on the subject. Is being debt-free and having some long-term savings a new American Dream? Is it just a reaction to excesses of the previous generation? Should we just take the free money and run?

My dream is to have a home I'm satisfied with, already have no debt but that'd be one, and to have enough disposable income to indulge in my hobbies. Yeah, having money for retirement is also key. Obviously children don't fit into that dream at all.

I change my mind very fast so I don't plan much in life, plans don't stick with me anyways. My only debt might be when I'm going to buy an apartment somewhere in a nice city near the beach. Until then, I will have enough money to live my life like I want and not working like a slave, to own a house and having that one revolving around my Universe. I have one life so fuck the american dream in my opinion. Maybe the second one will be for a badass car. I don't know about retirement, that's too far, I focus more on the present although I don't see myself reaching 60 years old.

My dream is just to have a job I like doing. It would only have to support me enough that as long as I'm responsible, I don't have to struggle to do what I want or need. I'd love to own a house, be debt free, and have a nice retirement, but at the moment those things don't seem reasonably within reach.

I just want to have SOMETHING. I'm sick of depending on my friends to have a place to live because I can't afford anything on my own. I'm tired of being in poverty. I want to be able to think about having a car like it's a realistic thing. I want to be accepted in society and not have to fear ridicule or physical harm every time I leave my house because I'd rather be girly than masculine.

I was able to pay off my college loans in less than a year and the only reason I even have a credit card is so I can build my credit score so somebody will sell me a house. I recently totaled my car and car shopping has made me realize that most people drive vehicles they simply cannot afford. The entire concept of credit blows my mind. I just have a lot of trouble with the idea of spending money you don't actually have.

I was able to pay off my college loans in less than a year and the only reason I even have a credit card is so I can build my credit score so somebody will sell me a house. I recently totaled my car and car shopping has made me realize that most people drive vehicles they simply cannot afford. The entire concept of credit blows my mind. I just have a lot of trouble with the idea of spending money you don't actually have.

Yeah, same here. We got into a bit of credit card debt with some unforeseen expenses of getting married and moving to another state, but we should have that taken care of in a few months. It feels disgusting when I think about it, and there's a certain amount of satisfaction when I buy something that I've worked for and can actually afford. I understand that sometimes there are situations where loans/credit has to be used, but poor planning seems like a lame excuse to me now.

The problem with the American Dream (family/house/debt free/retirement) is they conflict with each other. To get a house and have a retirement, you need to be relatively debt free. To be debt free, you need a decent job. To have a decent job, you need a good education. To have a good education, you typically need to take out loans.

Unless you inherit money, get lot of scholarships, or benefit from nepotism to eliminate some of those conflicts, it's very difficult to attain all of that these days. In many cases, it's retirement or family that is sacrificed.

@gabha: I saw that too and I was wondering if he's talking about two kids and half of a kid.

I thought that was a fairly well-known joke. Statistically, the average amount of children per family is two and a half kids.

In general, though, I was wondering more about people's experiences with getting out of debt and/or if you think there's a shift happening in how people view debt as a means to acquire what we're taught is necessary for "the good life," and if that's even important anymore.

I just paid off my undergrad/grad student loans at 27. I almost feel lucky since a lot of people are in far worse shape. Took a lot of work, not being able to do much, not going on any vacations, etc. My 20's have been sort of useless as far as making any financial progress.

I was happily strolling through life when I made some bad desicions and also third parties made me incurr a huge debt that right now I cant even fuckin pay :( ... so yeah right now all I want is to pay that fuckin debt. If we talk about what are my dreams , well it is to have a castle (yeah a medival type of castle) , have a family (wife and kids , pet and all) , and a decent career in animation making (of my own volition). Im 31 , poor as fuck , live with my mother in an apartment that belongs to my grandma with a job cleaning mugs and packing and unpacking small time products :( , as you can see that Im very far , far , far away from any of those things.

Oh yeah never , ever of everest of evers pay a fucking house through mortage its fucking madeness and part of the reasons why shit went down horribly. Fuck credit history and shit like that , pay for your house in cash , its fuckin madness and idiotic (which makes me a bigger idiot).

My husband and I have been married 3 years, and our only bills are the water and power, food, insurance, and internet. I'll admit, we got really lucky with getting the jobs we did, because we were able to pay off our house and cars in a little under 2 years. The money we got in Vegas helped too. We've never had credit cards, and don't plan on getting any. Also, no kids, we physically can't have any for reasons, and we don't really want any either. So I guess we're pretty much living the new American dream according to OP.

@zombiepenguin9: I don't know if owning a house it's necessary for everyone. For example, I don't have a solid dream about owning a house/apartment. I prefer to live in different countries for some years, on rent then move again. This is my third country, although I didn't managed anything by myself now, but I want to live in other two countries and if I'd try to own a house now, my main dreams would stay in place. I mean, you have two choices in life if you weren't born with rich parents : adventure - you don't have to save too much money, debts are not necessary and live every moment as good as possible, or family - work a lot, save money, cut some nice dreams and expect later to make those dreams come true. The joke made me smile btw.

The american dream to me is money never being a deterrent or issue. I wish to get to the point where I have to get whatever I want without issue but also make sure I enjoy life more than I work. And by that I mean, do something I love as work and I'll never work a day in my life.

My anti-American dream is living like a Japanese Salary-man. :S I guess I think about it all more like that. Avoiding the worst case scenario.

@zombiepenguin9: I lived in my natal country, then in Dubai, now in Germany. Then comes Canada, but I am still not sure if I will live in USA, that's too far to think about right now, although there are many good reasons to live in USA too. I dream to stay more in Canada, if I change my mind, then I will have a home there and just travel around the world. That's why I can't plan a lot, I have many many options, I'm young, don't have responsibilities and I'm not going to have many, because I am not the family type and my dreams are not impossible. It depends on each one, as you said, playing your cards right will keep you on track. Not having a family it's a really big difference in the budged for someone like me and I prefer to have more free time for fun and money.